Legal Question in Credit and Debt Law in Utah
what happens to your debts when you pass away?
is it true that a persons outstanding debts automaticially go to their next of kin or children when they pass away?
Asked on 8/10/05, 5:49 pm
1 Answer from Attorneys
Alvin Lundgren
Alvin R. Lundgren, L.C.
Re: what happens to your debts when you pass away?
If a person leaves property and money (the estate), the property is sold or money is used to first pay the deceased's debts. The balance goes to the heirs. If the deceased left no estate, then the debts in the deceased's name only cannot be collected. However, if there is a guarantor, co-signor or co-debtor, the survivor will have to pay.
Answered on 8/10/05, 6:48 pm